Tiago Arouca Mendes, managing partner of MDR Advogados, has participated today in the Mozambique Renewables 2022 Business Conference in Maputo, organised by ALER, AMER and the Alliance for Rural Electrification.
Tiago addressed the renewable energy market in Mozambique, offering the legal perspective on this topic. In his presentation, he began by presenting the investment opportunities arising from the ongoing legal reforms, particularly the creation of the Energy Regulatory Authority (ARENE), the new Electricity Law, the regulation on Access to Energy in Off-Grid Areas, the Economic Acceleration package of measures, the Investment Law and its Regulation (a reform still in progress), as well as other related regulations or codes.
The main considerations for investors include the need for in-depth knowledge of the particular Mozambican market, namely in relation to the State's participation, the conditions for establishing SPVs, the existing tax and customs incentives and the existing foreign exchange regime and contractual risk.
As a result of legislative changes and the growing interest of investors in the sector, the renewable energy market has evolved a lot, with a notable increase in the institutional framework, characterised by an increasing participation of private partners. The financial and technical assistance programs have naturally a strong role in the expansion of the market, allowing this to be a new and fast-growing sector. Mozambique is not immune to the pressures of energy transition and diversification, positioning itself as an interesting market for the transition from carbon and fossil fuels.
MDR Advogados has been following these issues with a multidisciplinary team of very diverse experience, bringing together professionals with extensive knowledge of the energy sector and all its different activities, particularly experienced in its legal and regulatory regimes, representing the various stakeholders.
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